The Federal Government has said that commercial sex workers, popularly referred to as “runs girls,” will be required to pay tax on their earnings under Nigeria’s new tax regime.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made the disclosure on Tuesday during an engagement session at the Redeemed Christian Church of God, City of David, Lagos.
He explained that the new tax framework does not distinguish between legitimate and illegitimate sources of income but simply focuses on whether an individual earns money.
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“If somebody is doing runs girls (sex work), right, they go and look for men to sleep with. You know that’s a service. They will pay tax on it,” Oyedele said.
According to him, the law only requires individuals to declare income earned from services rendered or goods provided. “It just asks you whether you have an income. ‘Did you get it from rendering a service or providing a good?’ Then, you pay tax,” he added.
However, Oyedele clarified that money given as gifts or upkeep will not be taxed, provided it is not in exchange for goods or services. “If the amount you are sending is money you are giving to them not because they have done something for you, then it is a gift. We call it a non-exchange transaction. That is not taxable,” he explained.
The reforms are being anchored on new legislation, including the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
Vary soon Nigeria will start collecting tax from money collect as ransom by kidnappers.